COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4926H.06S Bill No.:CCS for SS for SCS for HCS for HB 2168 Subject:Insurance - General; Insurance - Automobile; Environmental Protection; Motor
Vehicles
Type:Original Date:May 10, 2022Bill Summary:This proposal modifies provisions relating to insurance.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
General
Revenue*
($206,841) ($20,684) ($20,684) ($20,684)Total Estimated
Net Effect on
General
Revenue
($206,841) ($20,684) ($20,684) ($20,684)
*FY 2023 fiscal impact to General Revenue is the estimated DOR-ITSD cost for building and
implementing a system. Oversight assumes an implementation date of January 1, 2024 for the
new system; therefore Oversight has reflected potential additional DOR impacts starting in FY
2024.
Numbers within parentheses: () indicate costs or losses. L.R. No. 4926H.06S
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ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
Petroleum
Storage Tank
Insurance
Fund**
$0$0$0($2,237,802)Unemployment
Automation Fund
$4,402,670 or Up
to $5,000,000
$4,402,670 or Up
to $5,000,000
$4,402,670 or Up
to $5,000,000
$4,402,670 or Up
to $5,000,000
Total Estimated
Net Effect on
Other State
Funds
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
$2,164,868 or
Up to
$2,762,198
**Oversight notes the petroleum storage tank insurance fund is currently set to expire on
December 31, 2025. This proposal extends that date to December 31, 2030. Oversight reflects
this extension as a continuation/renewal of existing income and related expenses. The
Department of Natural Resources estimates an annual net fiscal impact of approximately of
negative $2.2 million to the fund beyond FY 2025 (annual collections into the fund of
approximately $16.6 million and annual expenses from the fund of $18.8 million
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Fully
Implemented (FY
2030)
Unemployment Trust
Fund
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
Unemployment
Compensation
Administration Fund
$0 or Up to
($91,109)
$0$0$0Total Estimated Net
Effect on All Federal
Funds
($4,402,670) or
Up to
($5,091,109)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000) L.R. No. 4926H.06S
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ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Fully
Implemented (FY
2030)
Total Estimated Net
Effect on FTE0 FTE0 FTE0 FTE0 FTE
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND
AFFECTED
FY 2023FY 2024FY 2025Fully
Implemented
(FY 2030)
Local
Government$0$0$0$0
FISCAL ANALYSIS
ASSUMPTION
Due to time constraints, Oversight was unable to receive some agency responses in a timely
manner and performed limited analysis. Oversight has presented this fiscal note on the best
current information that we have or on information regarding a similar bill(s). Upon the receipt
of agency responses, Oversight will review to determine if an updated fiscal note should be
prepared and seek approval to publish a new fiscal note.
§§288.132 & 288.133 – Unemployment Automation Fund
In response to a previous version, officials from Department of Labor and Industrial
Relations (DOLIR) stated Section 288.133 would require each employer that is liable for
contributions to pay an annual unemployment automation adjustment of two one-hundredths of
one percent of the employer’s total taxable wages for the twelve-month period ending the
preceding June thirtieth. The total adjustment due from all employers is not to exceed five
million dollars.
In addition, for the first calendar quarter of each year, the total amount of tax contributions L.R. No. 4926H.06S
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otherwise due for each employer liable for contributions shall be reduced by the dollar amount of
the automation adjustment.
Taxable wage for period ending June 30, 2021: $ 22,013,351,744 X 0.02% = $4,402,670.
The Department anticipates being able to absorb the implementation costs, including ITSD costs
through a current UI maintenance agreement and existing funds. However, until the FY 2023
budget is final, the Department cannot identify specific funding sources.
Oversight notes for this bill, ITSD assumes they will contract out the programming changes
needed to update automation adjustment percentage, contribution rate of employers, and
to create tables for unemployment automation fund. ITSD estimates the project would take
820.8 hours at a contract rate of $111 per hour for a total cost to the state of $91,109.
Oversight notes that DOLIR has an existing maintenance contract that is paid by the
Unemployment Compensation Administration Fund, supplemented by the Unemployment
Automation Fund as funds are available. Additionally, DOLIR selects its ongoing consultancy
rate dependent on difficulty of the programing and has a choice to employ in-house ITSD at $95
per hour, or outside IT consultants at $111 per hour. Therefore, Oversight will reflect a one-time
IT consultant cost of $0 up to ($91,109) in the fiscal note for FY 2023.
In response to a previous version, officials from Department of Commerce and Insurance
assumed the proposal will have no fiscal impact on their organization. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note
for this agency.
In response to a similar proposal from 2022 (HB 2290), officials from the Office of
Administration stated the proposal would not have a direct fiscal impact on their organization.
In response to a similar proposal from 2022 (HB 2290), officials from the University of Central
Missouri assumed the proposal would have indeterminate fiscal impact on their organization.
Oversight notes subsection 288.133.4 states that there shall be an offsetting reduction due from
each employer liable to pay contributions under chapter 288. Therefore, Oversight will assume
the proposal will net to zero fiscal impact to employers, including colleges, universities, and
local political subdivisions.
In response to the similar proposal, SB 876 (2022), officials from Missouri State University
stated the proposal would not have a direct fiscal impact on their organization.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities, counties, colleges, and universities were requested to respond to this
proposed legislation but did not. A listing of political subdivisions included in the Missouri
Legislative Information System (MOLIS) database is available upon request. L.R. No. 4926H.06S
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SEQ CHAPTER \h 1SEQ CHAPTER \h 1§§303.025 & 303.041 – Inoperable Motor
Vehicles
In response to a similar proposal from this year (HCS for SS for SCS for SB 783), officials from
the Department of Revenue (DOR) assumed the following regarding this proposal:
Administrative Impact – Driver License Bureau (DLB)
The proposal allows the Department to suspend registration of a vehicle if it has reason to
believe a vehicle is uninsured. Currently, the Department enforces compliance with the insurance
law in the following ways:
• If an owner fails to show proof of insurance at the time of registration, registration or renewal
of registration is denied;
• A no insurance conviction assesses four points to a driver or owners driving record; and
• If an insured driver and owner are involved in an accident and it is reported to the Department
pursuant to §303.040, the driver’s operating privilege and the owner’s vehicle registration is
suspended.
The court also has the ability to enter an order suspending the driving privilege, pursuant to
§303.025.3. In CY 2021, the Department received 4 court-ordered suspensions. The Department
does not have available data to determine an estimated volume of increase, but assumes it will be
minimal enough to be absorbed by current FTEs. If the increase is more significant than
anticipated or additional laws are passed that impact the staff who process these court orders,
additional FTE’s may be requested through the appropriations process.
To implement the proposed legislation, the Department will be required to:
• Create forms
• Update Department’s website
• Draft Internal and external procedures
• Draft Administrative Rules
FY 2024 –Driver License Bureau (DLB)
Associate Research/Data Analyst 160 hrs. @ $19.47 per hr. = $ 3,115
Research/Data Analyst 160 hrs. @ $24.29 per hr. = $ 3,886
Administrative Manager 60 hrs. @ $26.37 per hr. = $ 1,583
Total $8,584
Administrative Impact – Motor Vehicle Bureau (MVB) L.R. No. 4926H.06S
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To incorporate the necessary changes to account for voluntary registration suspension by motor
vehicle owner and requests to reinstate said registration, the Department will be required to:
• Incorporate the necessary changes of various Department systems;
• Update procedures, manuals, correspondence letters, and the Department website; and
• Train staff.
FY 2024 – Motor Vehicle Bureau
Associate Research/Data Analyst 134 hrs. @ $18.87 per hr. = $2,529
Research/Data Analyst 34 hrs. @ $23.55 per hr. = $ 801
Administrative Manager 17 hrs. @ $25.56 per hr. = $ 435
Total $3,765
FY 2024 – Strategy and Communications Office
Associate Research/Data Analyst 30 hrs. @ $18.87 per hr. = $ 566
Research/Data Analyst 30 hrs. @ $23.55 per hr. = $ 707
Total $1,273
Total $5,038
The Department anticipated being able to absorb the above costs. If multiple bills are passed that
require Department resources, the Department will request funding/FTE through appropriations
process.
Oversight assumes DOR will use existing staff and will not hire additional FTE to conduct these
activities; therefore, Oversight will not reflect the administrative costs DOR has indicated on the
fiscal note.
DOR noted OA-ITSD services will be required at a cost of $206,841 in FY 2023 (2,177.27 hours
x $95 per hour) and $20,684 in FY 2024 and FY 2025 (217.72 hours x $95 per hour).
Oversight does not have any information to the contrary in regards to DOR’s assumptions;
therefore, Oversight will reflect DOR’s OA-ITSD costs on the fiscal note.
In response to a similar proposal from this year (HCS for SS for SCS for SB 783), officials from
the Department of Commerce and Insurance, Department of CorrectionsMissouri
Highway PatrolMissouri Department of Transportation, Office of the State Treasurer
Missouri Office of Prosecution Services, Office of Administration and Office of the State
Public Defender each assumed the proposal will have no fiscal impact on their respective
organizations. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect a zero impact in the fiscal note for these agencies. L.R. No. 4926H.06S
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In response to a similar proposal from this year (HCS for SS for SCS for SB 783), officials from
the Office of the State Courts Administrator assumed the proposal would have no fiscal
impact on their organization. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact in the fiscal note for this agency.
§319.129 – Petroleum Storage Tank Insurance Fund
In response to a previous version, officials from the Petroleum Storage Tank Insurance Fund
(PSTIF) assumed the following regarding this proposal:
Section 319.129.16 would extend all PSTIF Board of Trustees' operations until 12/31/2030.
Under current law, the Board's operations will be reduced on 1/1/2026, thereafter no longer
accepting new claims. Revenue will cease and the cash balance in the Fund will be used for
paying costs for claims previously filed, including the administrative costs necessary during the
"wind down" period until all claims are closed or moneys are depleted. Actuarial analysis
indicates the cash balance on 12/31/2025 will not be sufficient to meet long-term liabilities for
claims already filed, plus those expected to be filed before the sunset date. The estimated
shortfall is approximately $45 million. This issue is exasperated by the anticipated increase in
claims as the sunset date nears and tank and property owners rush to test for impact of previously
unreported pollution and file claims before the cut-off.
If this bill passes, the rush to file end-of-program claims will be spread out over more years,
lessening the impact as revenues are still being collected. Additionally, in an effort to have
adequate revenue to meet long-term liabilities, the PSTIF Board of Trustees is currently
considering an increase in the transport load fee, the primary source of revenue for the Fund. The
five additional years of collection this bill provides would allow for a smaller increase in the fee.
PSTIF's 2021 "Breakeven Analysis" estimates that revenues and expenses from 1/1/2026 through
12/31/2030 (the period of the proposed extension) with no increase in the transport load fee
would be consistent with current PSTIF budget plus/minus typical fluctuations due to economic
factors and claims projections as follows:
FY 2026: Total Est. Revenue $16,846,213; Total Est. Expenses $18,253,921
FY 2027: Total Est. Revenue $16,791,007; Total Est. Expenses $18,478,701
FY 2028: Total Est. Revenue $16,735,401; Total Est. Expenses $18,375,900
FY 2029: Total Est. Revenue $16,679,367; Total Est. Expenses $18,613,508
FY 2030: Total Est. Revenue $16,622,888; Total Est. Expenses $18,860,690
FY 2031(1/2): Total Est. Revenue $7,675,000; Total Est. Expenses $12,859,926
Oversight does not have information to the contrary and therefore, Oversight will reflect an
extension of revenue and related expenses as provided by the PSTIF. L.R. No. 4926H.06S
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Oversight notes there was a balance of $43,580,843 in the Petroleum Storage Tank Insurance
Fund (0585) as of April 30, 2022. The fund had receipts of $17.5 million in FY 2021.
§375.159 – Travel Insurance
In response to a similar proposal from 2022 (HB 2566), officials from the Department of
Commerce and Insurance assumed the proposal would have no fiscal impact on their
organization. Oversight does not have any information to the contrary. Therefore, Oversight will
reflect a zero impact in the fiscal note for this section.
§376.380 – Value of Certain Insurance Policies and Contracts
In response to a similar proposal from 2022 (SB 1079), officials from the Department of
Commerce and Insurance assumed the proposal will have no fiscal impact on their
organization.
Oversight notes that the above mentioned agency has stated the proposal would not have a direct
fiscal impact on their organization. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact on the fiscal note for this section.
§379.011 – Delivery of Insurance Notices
In response to a previous version, officials from the Department of Commerce and Insurance
assumed the proposal will have no fiscal impact on their organization. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note
for this section.
Bill as a whole:
Officials from the Department of Public Safety - Missouri Highway Patrol assume the
proposal will have no fiscal impact on their organization. Oversight does not have any
information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for
these agencies.
In response to a previous version, officials from the Office of the State Treasurer, the Office of
the State Courts AdministratorDepartment of Natural Resources, the Department of
Public Safety - Missouri Highway Patrol, the Missouri Department of Conservation, the
Missouri Department of Transportation and the Office of the State Public Defender
assumed the proposal will have no fiscal impact on their respective organizations. Oversight
does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in
the fiscal note for these agencies.
In response to a previous version, officials from the Department of Corrections defer to the
Office of Administration for the potential fiscal impact of this proposal. L.R. No. 4926H.06S
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In response to a previous version, officials from the City of Kansas CityCity of Springfield
and St. Louis County stated the proposal would not have a direct fiscal impact on their
respective organizations.
Rule Promulgation
In response to a previous version, officials from the Joint Committee on Administrative Rules
assumed this proposal is not anticipated to cause a fiscal impact beyond its current appropriation.
In response to a previous version, officials from the Office of the Secretary of State (SOS)
noted many bills considered by the General Assembly include provisions allowing or requiring
agencies to submit rules and regulations to implement the act. The SOS is provided with core
funding to handle a certain amount of normal activity resulting from each year's legislative
session. The fiscal impact for this fiscal note to the SOS for Administrative Rules is less than
$5,000. The SOS recognizes that this is a small amount and does not expect that additional
funding would be required to meet these costs. However, the SOS also recognizes that many
such bills may be passed by the General Assembly in a given year and that collectively the costs
may be in excess of what the office can sustain with its core budget. Therefore, the SOS reserves
the right to request funding for the cost of supporting administrative rules requirements should
the need arise based on a review of the finally approved bills signed by the governor. L.R. No. 4926H.06S
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FISCAL IMPACT – State
Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully
Implemented
(FY 2030)
GENERAL REVENUE
FUND
Cost – DOR – OA-ITSD
services (⸹⸹303.025 to
303.041) p. 7
($206,841)($20,684)($20,684)($20,684)ESTIMATED NET
EFFECT ON THE
GENERAL REVENUE
FUND
($206,841)($20,684)($20,684)($20,684)
PETROLEUM
STORAGE TANK
INSURANCE FUND
(0585)
Revenue - PSTIF Board of
Trustees - Extension of
transport load fee from
12/31/2025 to 12/31/30
(§319.129.16) p. 8
$0$0$0$16,622,888Expenses - PSTIF Board of
Trustees - Extension of
program from 2025 to 2030
(§319.129.16) p. 8
$0$0$0($18,860,690)ESTIMATED NET
EFFECT ON THE
PETROLEUM
STORAGE TANK
INSURANCE FUND
$0$0$0($2,237,802) L.R. No. 4926H.06S
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UNEMPLOYMENT
AUTOMATION FUND
(0953)
Transfer In – DOLIR from
the federal Unemployment
Trust Fund (§§288.132 &
288.133) p. 4-5
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
ESTIMATED NET
EFFECT ON THE
UNEMPLOYMENT
AUTOMATION FUND
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
$4,402,670 or
Up to
$5,000,000
UNEMPLOYMENT
TRUST FUND (0122)
Transfer Out – DOLIR to
the state Unemployment
Automation Fund
(§§288.132 & 288.133) p.
4-5
($4,402,670)
or Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
ESTIMATED NET
EFFECT ON THE
UNEMPLOYMENT
TRUST FUND
($4,402,670)
or Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
($4,402,670) or
Up to
($5,000,000)
UNEMPLOYMENT
COMPENSATION
ADMINISTRATION
FUND (0948)
Cost – DOLIR – IT services
(§§288.132 & 288.133) p.
4-5
$0 or Up to
$91,109)
$0$0$0ESTIMATED NET
EFFECT ON THE
UNEMPLOYMENT
COMPENSATION
$0 or Up to
$91,109)
$0$0$0 L.R. No. 4926H.06S
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ADMINISTRATION
FUND
FISCAL IMPACT
– Local
Government
FY 2023
(10 Mo.)
FY 2024FY 2025Fully
Implemented
(FY 2030)
$0$0$0$0
FISCAL IMPACT – Small Business
Certain small businesses may be impacted by this proposal.
FISCAL DESCRIPTION
This proposal enacts provisions relating to insurance.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Natural Resources
Petroleum Storage Tank Insurance Fund
Department of Revenue
Missouri Department of Transportation
Department of Commerce and Insurance
Office of the State Treasurer
Missouri Highway Patrol
Missouri State Treasurer’s Office
Office of the State Public Defender
Office of the State Courts Administrator
Department of Corrections
Missouri Office of Prosecution Services
Department of Labor and Industrial Relations
Office of Administration
Missouri Department of Conservation
University of Central Missouri
City of Kansas City
City of Springfield
Phelps County Sheriff
Kansas City Police Department L.R. No. 4926H.06S
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St. Louis County Police Department
Eldon Police Department
St. Joseph Police Department
Julie MorffRoss StropeDirectorAssistant DirectorMay 10, 2022May 10, 2022